AKD STOCK SMART, Jan 25, 2019
Weekly Review
Stock market opened the week positive in anticipation of a successful visit of PM Khan to Qatar while the unveiling of much-awaited 'mini budget' during the week kept the momentum positive. The same reflected in the stock market's performance as the bourse closed the week at 40,265pts, up 2.44%WoW. Average daily volume mimicked the same optimism and increased by 44%WoW to 168mn shares while net foreign buying of US$17mn during the week also supported the index. Additional news flows moving the market included: 1) The State Bank of Pakistan (SBP) receiving US$1bn from the UAE following an agreement with the Abu Dhabi Fund for Development (ADFD) in Abu Dhabi on Jan 22, 2) The cabinet approving Gas Infrastructure Development Cess settlement mechanism, 3) The IMF revising GDP growth projections downwards to three percent for the current fiscal and in the subsequent years under PTI rule, and 4) the foreign currency reserves held by the SBP falling by USD$265mn to US$6.6bn. Gainers at the bourse under our universe included: 1) PSMC (+23.8%WoW), 2) HBL (+11.4%WoW), 3) UBL (+9.9%WoW), 4) MCB (+4.7%WoW) and 5) PPL (+3.7%WoW), whereas laggards were: 1) APL (-3.4%WoW), 2) GWLC (-2.2%WoW), 3) EFERT (-1.6%WoW), 4) PIOC (-1.3%WoW) and 5) FATIMA (-1.3%WoW). Volume leaders during the week were: 1) BOP (77mn shares), 2) KEL (57mn shares), 3) PIBTL (56mn shares) and 4) TRG (44mn shares).
Outlook
With the rollover week ending, we expect market to continue its journey north driven by the euphoria over mini budget. Also, clarity on GIDC issue is expected to emerge next week which can significantly affect sectors like fertilizer and textile. However, we still pin the longer term direction over clarity regarding IMF. Moreover, the result season is upon us where bigwigs like LUCK are expected to announce their result along with other companies like EPCL and BAHL.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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